Personal Loan

This scheme aims at providing credit facility for meeting out socioeconomic needs of employees as well as employees of Punjab Government , Boards & Corporations for personal needs such as child’s education, furnishing your home, buying a computer, son/daughter’s marriage, holiday tour with family or any other basic requirements without giving any purpose of the loan.



ClassEmployees of this Bank working in SADB & PADBs and employees of Punjab Govt. in the State of Punjab & Chandigarh
AgeMinimum 21 years and maximum 57 years
Service Tenure1 year after the confirmation/regularization
Loan Limit10 months gross salary or Rs. 4 lakh(whichever is less)
Tenure12,18,24,30,36,42,48,60 and 84 months as decided by the borrower
Rate of Interest14% on reducing balance with half yearly/six monthly rests subject to change from time to time by the Bank. The amount of overdue installment will carry 1% more interest than the normal rate of interest.
Repayment of loanLoan is repayable in equated monthly installments in the form of post dated cheques. 1st installment will start after one month. The loan will be repaid before retirement
SecurityNo collateral security is required. Only two guarantors known to the bank/institution of the loanee and one passport-size photo of loanee and guarantor is required.
Option to prepay loanLoanee will have option to prepay the loan at one time during the tenure of the loan in lump-sum. A pre-payment fee of 1% will be payable on the outstanding loan amount. No part prepayment is allowed
GeneralNo employee will be given this loan in facility who has default in repayment of loan in any other scheme. Borrower has to get his Salary Certificate attested from the D.D.O. of his Department alongwith an affidavit from the D.D.O. taking up responsibility for repayment of loan. 40% take home salary of Loanee/Guarantor included instalment in the carry home salary.
Sanctioning AuthorityAny of the two officers amongst the Manager/Asstt. General Manager/DGM/RO is the competent authority to sanction the personal loan. Sanctioning authority will sign the Loan Agreement on behalf of the Bank.
Repayment of LoanThe loan should be repayable in monthly instalments. The total duration of loan should not exceed five years in any case. The borrower should give post dated cheques of total repayment instalment. In case the post dated cheque is dishonoured on a due date, the action against the borrower will be taken under the law.
Membership & Admission FeeThe borrower should be enrolled as a nominal member of the Bank. He should pay Rs. 10/- as Admission fee and Rs. 200/- as Membership. The borrower should be required to produce 2 Guarantors who should also be nominal members of the Bank. No additional share will be purchased by the borrower in this scheme. The employees of the Bank are exempted from depositing the above said fee.

Documents required to get a loan:

Pre Sanction

  1. Application form
  2. Latest Photograph
  3. Bank Account statement
  4. Proof of income (Salary Certificate)
  5. Employer’s Certificate of Identity and and proof of continuity of current job
  6. Proof of Residence
  7. Nominal Membership Form

Post Sanction

  1. Agreement
  2. Signature verification
  3. Post dated cheques
  4. Two guarantors
  5. Promissory Note
  6. Letter of Waiver